Minneapolis Tax Lawyers

Having unresolved problems with the IRS can lead to severe consequences. Funds from your bank account(s) or paycheck and be levied by the IRS without your even realizing it.

There are a number of ways to keep this from happening. One way is referred to as making an Offer in Compromise. There is a Congress-mandated program that allows taxpayers to try to make an offer to settle their tax debt in full. This is an offer based on amount calculated by the IRS and may be for less than the total amount originally due. Your property or wages will no longer be seizable once there is an offer in place. The offer can be one of three different types.

The first of these is Doubt as to Liability. Whether the taxpayer lawfully owes the money at all is what is in question here.

The second offer type that comes under this category is Doubt as to Collectability. When you think of an Offer in Compromise, this is the most common type of offer you would make.

Effective Tax Administration is the third type of offer. This type of offer is one of the most rarely accepted by the IRS. In this type of settlement, it is determined that the taxpayer can afford to pay but that there would be some difficulty in the procedure.

There is a fairly well-kept secret that is the second basic way of resolving problems with the IRS. The IRS must collect the income tax within a specific amount of time. The Collection Statute Expiration Date (CSED) usually occurs ten years from assessment of the original tax debt. It is sometimes possible to wait for the elapse of this date.

When a taxpayer is deemed by the IRS to have an inability to pay, this third way of settling the debt can be implemented. When this happen, the taxpayer's account goes into Currently Not Collectible Status. This is also referred to as Status 53, so named because the number on the screen that an IRS employee sees for this procedure is: 53. During the time you are in this status, your debt is in the hardship category and the collection statute continues to run.

The fourth alternative is to set up an installment agreement of payment plan. This is just what it sounds like.

The fifth way you can be deemed eligible for IRS tax relief debt is when you are in bankruptcy. In this case, some of the taxes and penalties are dischargeable, and those that are not may be paid without interest.

Penalty abatement is another choice (the sixth we discuss here). This means you are requesting that penalties be cancelled. The original tax must still be fully paid.

Innocent Spouse relief is also possible. Here, taxes due by a former or current spouse may be forgiven under particular circumstances.

Regardless what your particular situation is, you are well advised to consult a professional to help implement any of these methods.

American Tax Lawyer, Darrin T. Mish represents taxpayers all over the United States and on every inhabited continent. His many years of experience in dealing with tax problems benefit clients tremendously. For more information, visit http//americantaxlawyer.com. Darrin may be reached by calling toll free (888) 438-6474.